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The following describes some major issues addressed in 2007 and 2008 as the Railroad Retirement Board continued efforts to improve agency operations and better serve its customers.

Service

Customer Service Plan

The Board’s Customer Service Plan promotes the principles and objectives of customer-driven quality service agency-wide.  The plan specifies the level of service customers can expect, measures performance, and obligates the Board to report annually on its performance. Beginning in fiscal year 2008, the agency implemented a revised plan which provides customers with information about when to expect a decision on their benefit application and/or claim.  The plan will continue to be updated periodically on the basis of the Board's experience, comparisons of the agency's service with the best in business, and feedback received from customers.

During fiscal year 2007, customers received benefit services within the timeframes promised in the Board’s plan 98.6 percent of the time. This figure represents overall timeliness of customer service in four benefit areas: retirement applications; survivor applications; disability applications and payments; and railroad unemployment and sickness benefit applications and claims. It should be noted that the Board's Office of Inspector General has found several technical problems with performance tracking for retirement applications.  System changes anticipated in fiscal year 2008 will correct these problems.

During fiscal year 2007, the plan required that persons who filed in advance for a railroad retirement employee or spouse annuity would receive their first payment, or a decision, within 35 days of their annuity beginning date.  Persons who did not file in advance would receive their first payment, or a decision, within 65 days of the date they filed their application.  Of the cases processed during fiscal year 2007, 92.6 percent of employee and 93.0 percent of spouse applicants who filed in advance received a payment, or a decision, within 35 days of their annuity beginning date.  Also, of the cases processed, 97.3 percent of employee and 96.4 percent of spouse applicants who had not filed in advance received a payment or a decision within 65 days of their filing date.

The Board’s plan required that those who filed for a disability annuity receive a decision within 105 days of the date they filed their application. If entitled, the first payment would be within 25 days of the date of the Board’s decision, or the earliest possible payment date, whichever is later. Of the cases processed during fiscal year 2007, 69.6 percent of those filing for a disability annuity received a decision within 105 days of the date they filed an application. Of those entitled to disability benefits, 95.3 percent received their first payment within the plan’s time frame.

The plan required that those filing for monthly survivor benefit payments, or a lump-sum benefit, will receive their first payment, or a decision, within 65 days of the date they filed their application, or became entitled to benefits, if later. Those already receiving a spouse annuity would receive their first payment, or a decision, within 35 days of the date the Board received notice of the employee’s death. Of the cases considered during fiscal year 2007, 93.3 percent of the applicants for an initial survivor annuity were issued a payment or a decision within 65 days. In addition, 97.5 percent of the applicants for a lump-sum benefit were issued a payment or a decision within 65 days. In cases where the survivor was already receiving a spouse annuity, 94.8 percent of the applicants were issued a payment or a decision within 35 days of the Board being notified of the employee’s death.

Under the plan, persons who filed an application for unemployment or sickness insurance benefits would receive a claim form, or a decision, within 15 days of the date the application was filed, and persons filing claims for subsequent biweekly unemployment or sickness insurance benefits would receive a payment, or a decision, within 15 days of the date the Board received their claim forms.  During fiscal year 2007, 99.5 percent of unemployment benefit applications sampled for timeliness and 99.2 percent of sickness benefit applications processed met the Board's standard.  In addition, 99.7 percent of subsequent claims processed for unemployment and sickness benefits met the Board's standard for fiscal year 2007.

Service Enhancements

Field Service Restructuring

During fiscal year 2007, the Board implemented a hub-and-satellite restructuring plan for its field service offices, which will enable the agency to improve customer service by utilizing new technologies more effectively.  The hub-and-satellite configuration will continue to provide telephone and face-to-face service to Board customers, and will allow agency management to more effectively balance and share workloads among the offices in each network.  The benefits of the new structure will continue to increase as new technology and automation options become available.

Toll-Free Telephone Service

In 2007 the Board began working on a new nationwide toll-free telephone service that will allow the agency to dynamically route phone calls from one field office to another, based on logical business rules and customer needs.  In doing so, it will increase the Board's ability to balance its workloads and route calls to the representative who can best respond in a timely and effective manner.  It also will provide the agency with much-needed management information about telephone call volumes and the nature of those calls.

Implementation of the new service is being phased in, starting with 12 Board field offices.  The offices initially using the service are St. Paul and Duluth, Minnesota; Fargo, North Dakota; Des Moines, Iowa; Jacksonville and Tampa, Florida; Atlanta, Georgia; Birmingham, Alabama; Oakland, Sacramento and Covina, California; and Mesa, Arizona.

Nationwide toll-free telephone service will be provided to customers in additional Board field locations once the initial implementation phase has been completed.

Document Imaging

In fiscal year 2007, the Board conducted a pilot program involving the expansion of its existing document imaging system to four field offices.  During fiscal year 2008, the agency will expand the use of document imaging to 25 additional offices, with the remaining offices scheduled for implementation during fiscal year 2009.  Expanding document imaging to field offices will help the Board reduce paperwork, improve efficiency and effectiveness, and protect customer information within a secure electronic environment.

Contact Log

The Board implemented an online system to better manage customer contacts in its network of nationwide field offices.  The system, known as a contact log, is an interactive database used to record real-time information from customer contacts, primarily telephone calls.  It will replace paper files and notes that are currently housed in the Board's field offices and will be available to any customer service agent across the country, both in the field service and in the agency's Chicago headquarters.  All representatives are able to electronically record contacts or transactions completed with customers in order to maintain a chronological service history for each customer.

Officials

President Bush reappointed Michael S. Schwartz as Chairman, Jerome F. Kever as Management Member, and V. M. Speakman, Jr., as Labor Member of the Board.  Their nominations, for terms through August 28, 2012, August 28, 2008, and August 28, 2009, respectively, were confirmed by the U.S. Senate on June 22, 2007.

Mr. Schwartz was first appointed to the Board by President Bush in July 2003.  A long-time official with the State of Illinois, he previously served as the Director of the Illinois Department of Central Management Services (CMS) from 1995 to 2002, and as Associate Director of CMS from 1989 to 1995.  Mr. Schwartz also served the State of Illinois as Assistant Director of Personnel, Office of Governor (1988-89); as Executive Assistant to the Director of Revenue (1986-88); and as Assistant to the Director of Professional Regulation (1985-86).

The longest-serving Management Member in the agency's history, Mr. Kever was first appointed to the Board by President George H. W. Bush in 1992 upon the recommendation of the Association of American Railroads and the American Short Line and Regional Railroad Association.  He was reappointed to a second term of office by President Clinton in 1995, and then to a third term in May 2000.  Prior to his appointment to the Board, Mr. Kever was Vice President and Corporate Controller of the former Santa Fe Pacific Corporation (now merged into the Burlington Northern Santa Fe), which owned two Class I railroads.  Before that he held executive positions with Household International and Deloitte and Touche.

The agency's longest-serving Labor Member, Mr. Speakman was first appointed to the Board by President George H. W. Bush in 1992 upon the recommendation of the Railway Labor Executives' Association (RLEA).  He was reappointed to a second term of office by President Clinton in 1995, and then to a third term in May 2000.  Prior to his appointment to the Board, Mr. Speakman was President of the Brotherhood of Railroad Signalman (1987-92).  In this position he also served as Vice Chairman of the RLEA, Chairman of the RLEA's Committee on Railroad Retirement, and Secretary-Treasurer of the Transportation Trades Department of the AFL-CIO.  He also served the Brotherhood of Railroad Signalmen as Vice President (1985-87), Director of Research (1984-85), Grand Lodge Representative (1979-84), and Local Lodge Chairman (1977-79).

In a number of executive appointments within the agency, the Board named Cecilia A. Freeman as Director of Retirement Benefits, Valerie F. Allen as Director of Survivor Benefits, and Janet M. Hallman as Chief of Resource Management Center.

Program Assessment Rating Tool Evaluation

The Board in fiscal year 2007 participated for the first time in the Office of Management and Budget's Program Assessment and Rating Tool (PART) evaluation process.  Reviews of the Rail Industry Pension Fund and the Railroad Unemployment Insurance Trust Fund were favorable, with each program earning an overall performance rating of "Effective."  This is the highest rating possible, and it indicates that the Board pays benefits accurately and timely, and that the agency is tracking and achieving the majority of its performance measures.  In connection with the PART review, the Board has established and is implementing improvement plans to modernize its information technology systems infrastructure and customer service delivery, and to expand its document imaging system.  The agency's complete PART review is available on the Board's Web site.

Technology and Automation

Database Conversion Project

In 2007 the Board completed work on a major information technology initiative to convert its existing IDMS database management system to a more flexible and efficient DB2 database system.  The conversion places the agency in a better position to provide service more efficiently in the coming years.

The project required major changes in the Board's infrastructure environment, including installation of new software for the agency's mainframe, creation of DB2 test areas on the mainframe, and installation of new testing, analysis, and programming tools.  To meet the project's demands, the agency implemented an upgrade of its mainframe system as well as a large storage system upgrade.  Extensive training was also provided to business analysts, software developers, database administrators, systems engineers, and supervisors.

Conversion of the database management system reduces the agency's dependency on technologies with a limited, shrinking experience base, and positions the Board for the next generation of IT integrators/developers who have the experience and knowledge of new technologies.

Data Optimization

Following completion of its database conversion project, the Board began the next phase of its informational technology modernization effort, which is to optimize performance of the agency's databases and further reduce data redundancy.  This phase is necessary to ensure that retrieval of data is fast and accurate, which can only be achieved through a properly tuned database.  An optimized database also reduces the need for frequent database restructuring, which can be costly and time-consuming and can impede performance.

RRB Vision

In 2007, over 30 electronic presentations (referred to as "RRB Vision" programs), were developed and placed on the agency's intranet for viewing by employees.  Topics included technical training for claims examiners/representatives, non-technical training sessions, and presentations from the Board's Office of Equal Opportunity.  The agency also developed its first program for the public and placed it on the Board's Web site.  Additional presentations for rail employees and employers are being developed.

The benefits of RRB Vision include consistency in training, a greater number of training programs available to offsite staff, availability of training on-demand, and savings in travel costs when programs are done via RRB Vision instead of in person.  The Board can also provide assistance, training, and instructions to rail employers, rail workers, beneficiaries and claimants on many topics 24 hours a day.

Staffing

Like many Federal agencies, the Board has an aging workforce, with a number of employees approaching and reaching retirement age. To help address an increased rate of attrition linked to retirement, the agency has looked at a variety of critical positions to identify any gaps in particular competencies or skills that exist within the workforce. In some cases, the Board has provided supplemental developmental and training opportunities to current employees so that the activities associated with these positions will continue as more experienced employees leave the agency. The Board has also continued hiring new employees to fill essential positions as funding levels permit. In fiscal year 2007, for the first time in many years, the agency was able to hire sufficient entry-level employees for two claims examiner training classes. Given an expected increase in the agency attrition rate, these new employees, together with those the Board needs to hire over the next several years, will be key to the long-term success of the agency in continuing to provide outstanding service to its customers.

The Board is also in the process of developing more formalized human capital management and succession planning documents. This is partially in response to recommendations and suggestions made by the Office of Personnel Management. The agency has also created an internal succession planning task force, chaired by its Director of Human Resources, to provide coordination and consolidation of existing plans, as well as to identify new initiatives to address this important area.

Office of Equal Opportunity

Diversity Program

During fiscal year 2007, the Office of Equal Opportunity’s employee committees sponsored many events and activities at the Board to foster a diverse work environment and enhance the understanding of disability issues.

Throughout the year, the Workplace Diversity Committee conducted several cultural enrichment events to commemorate African American History Month, Asian Pacific American Heritage Month, Hispanic Heritage Month, Native American Heritage Month and Women’s History Month. In addition, the Employees with Disabilities Advisory Council sponsored an informational session on accommodating mental disabilities in the workplace.

Recruitment

The Office of Equal Opportunity worked cooperatively with the Board’s Bureau of Human Resources to create a diverse pool of qualified candidates for employment by identifying sources to recruit individuals from various racial and ethnic groups, individuals with disabilities and disabled veterans.

Public Information Activities

The Board maintains direct contact with railroad retirement beneficiaries through its field offices located across the country. Field personnel explain benefit rights and responsibilities on an individual basis, assist railroad employees in applying for benefits and answer any questions related to the benefit programs. The Board also relies on railroad labor groups and employers for assistance in keeping railroad personnel informed about its benefit programs.

At informational conferences sponsored by the Labor Member of the Board for railroad labor union officials, Board representatives describe and discuss the benefits available under the railroad retirement-survivor, unemployment-sickness and Medicare programs, and the attendees are provided with comprehensive informational materials. The program marked its 50th anniversary in 2007 with a total of 1,692 railroad labor union officials attending 32 informational conferences held in cities throughout the United States. In addition, railroad labor unions frequently request that Board representatives speak before their meetings, seminars and conventions. In 2007, the Labor Member’s Office was represented at eight union gatherings attended by 2,535 railroad labor officials. Field personnel addressed 133 local union meetings with 6,083 members in attendance.

At seminars for railroad executives and managers, Board representatives review programs, financing, and administration, with special emphasis on those areas which require cooperation between railroads and Board offices. During 2007, the Management Member’s Office conducted four seminars for railroad officials, as well as pre-retirement counseling seminars attended by railroad employees and their spouses, and benefit update presentations.

Office of Inspector General

During fiscal year 2007, the Office of Inspector General continued its mission to ensure the economy, efficiency and effectiveness of the programs administered by the Board, and to identify and investigate cases of fraud, waste and abuse in agency programs. To further this mission, auditors completed nine audits and issued their findings and/or recommendations to Board management. Special agents also investigated over 450 potential criminal matters, representing approximately $10.6 million in fraud against the agency.

The Office of Inspector General completed the audit of the Board’s fiscal year 2006 financial statements and began its audit of the agency’s fiscal year 2007 statements. Auditors issued an unqualified, or clean, opinion on the agency’s fiscal year 2006 financial statements. They also reported material weaknesses in internal control over information security, performance measurement and the actuarial projection process, and reportable conditions in controls over compliance with the Prompt Payment Act and financial reporting.

Pursuant to the requirements of the Federal Information Security Management Act of 2002 (FISMA), auditors conducted an annual evaluation of the agency’s information security program, and concluded that the Board had not yet achieved an effective FISMA-compliant security program. The agency is working to address previously-reported deficiencies in access controls, risk assessments and periodic testing/evaluation. Auditors also reported weaknesses in other areas of the agency’s security program, including policies and procedures, certification and accreditation.

Other audits completed during the fiscal year examined the Board’s occupational disability program, data transmission controls in its State wage match program, information security in the automated system that pays benefits under the Railroad Retirement Act, the agency’s privacy program, Federal taxes withheld from railroad retirement annuities, and controls to safeguard sensitive, personally identifiable information.

Office of Inspector General investigators focus on identifying, investigating and presenting fraud cases for prosecution throughout the United States. Staff conduct investigations relating to fraudulent receipt of Board sickness, unemployment, disability or retirement benefits, and investigate railroad employers and unions when there is an indication that they have submitted false reports to the Board. They also investigate allegations of misconduct by agency employees. Investigative efforts can result in criminal convictions, civil penalties, administrative sanctions and/or the recovery of program benefits. During fiscal year 2007, investigative efforts resulted in 46 convictions, 32 indictments and informations, 25 civil judgments and $4.6 million in recoveries, restitutions, fines, civil damages and penalties.